Texas 2009 - 81st Regular

Texas House Bill HB3128 Compare Versions

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1	1	H.B. No. 3128
2	2
3	3
4	4	AN ACT
5	5	relating to service of process on condominium unit owners and
6	6	condominium unit owners' associations in certain municipalities.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 82.002(c), Property Code, is amended to
9	9	read as follows:
10	10	(c) This section and the following sections apply to a
11	11	condominium in this state for which the declaration was recorded
12	12	before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053,
13	13	82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113,
14	14	82.114, 82.116, 82.118, 82.157, and 82.161. The definitions
15	15	prescribed by Section 82.003 apply to a condominium in this state
16	16	for which the declaration was recorded before January 1, 1994, to
17	17	the extent the definitions do not conflict with the declaration.
18	18	The sections listed in this subsection apply only with respect to
19	19	events and circumstances occurring on or after January 1, 1994, and
20	20	do not invalidate existing provisions of the declaration, bylaws,
21	21	or plats or plans of a condominium for which the declaration was
22	22	recorded before January 1, 1994.
23	23	SECTION 2. Subchapter C, Chapter 82, Property Code, is
24	24	amended by adding Section 82.118 to read as follows:
25	25	Sec. 82.118. SERVICE OF PROCESS ON UNIT OWNERS. (a) A unit
26	26	owner of a condominium located wholly or partly in a municipality
27	27	with a population of more than 1.9 million may be served with
28	28	process by the municipality or the municipality's agent for a
29	29	judicial or administrative proceeding initiated by the
30	30	municipality and directly related to the unit owner's property
31	31	interest in the condominium by serving the unit owner at the unit
32	32	owner's last known address, according to the records of the
33	33	appraisal district in which the condominium is located, by any
34	34	means permitted by Rule 21a, Texas Rules of Civil Procedure.
35	35	(b) Notwithstanding Subsection (a), a unit owner may not
36	36	offer proof in the judicial or administrative proceeding, or in a
37	37	subsequent related proceeding, that otherwise proper service by
38	38	mail of the notice was not received not later than three days after
39	39	the date the notice was deposited in a post office or official
40	40	depository under the care and custody of the United States Postal
41	41	Service.
42	42	SECTION 3. Section 82.153(a), Property Code, is amended to
43	43	read as follows:
44	44	(a) A condominium information statement must contain or
45	45	accurately disclose:
46	46	(1) the name and principal address of the declarant
47	47	and of the condominium;
48	48	(2) a general description of the condominium that
49	49	includes the types of units and the maximum number of units;
50	50	(3) the minimum and maximum number of additional
51	51	units, if any, that may be included in the condominium;
52	52	(4) a brief narrative description of any development
53	53	rights reserved by a declarant and of any conditions relating to or
54	54	limitations upon the exercise of development rights;
55	55	(5) copies of the declaration, articles of
56	56	incorporation of the association, the bylaws, any rules of the
57	57	association, and amendments to any of them, and copies of leases and
58	58	contracts, other than loan documents, that are required by the
59	59	declarant to be signed by purchasers at closing;
60	60	(6) a projected or pro forma budget for the
61	61	association that complies with Subsection (b) for the first fiscal
62	62	year of the association following the date of the first conveyance
63	63	to a purchaser, identification of the person who prepared the
64	64	budget, and a statement of the budget's assumptions concerning
65	65	occupancy and inflation factors;
66	66	(7) a general description of each lien, lease, or
67	67	encumbrance on or affecting the title to the condominium after
68	68	conveyance by the declarant;
69	69	(8) a copy of each written warranty provided by the
70	70	declarant;
71	71	(9) a description of any unsatisfied judgments against
72	72	the association and any pending suits to which the association is a
73	73	party or which are material to the land title and construction of
74	74	the condominium of which a declarant has actual knowledge;
75	75	(10) a general description of the insurance coverage
76	76	provided for the benefit of unit owners; [and]
77	77	(11) current or expected fees or charges to be paid by
78	78	unit owners for the use of the common elements and other facilities
79	79	related to the condominium; and
80	80	(12) for a condominium located wholly or partly in a
81	81	municipality with a population of more than 1.9 million a statement
82	82	that a unit owner:
83	83	(A) as an alternative to personal service, may be
84	84	served with process by the municipality or the municipality's agent
85	85	for a judicial or administrative proceeding initiated by the
86	86	municipality and directly related to the unit owner's property
87	87	interest in the condominium by serving the unit owner at the unit
88	88	owner's last known address, according to the records of the
89	89	appraisal district in which the condominium is located, by any
90	90	means permitted by Rule 21a, Texas Rules of Civil Procedure;
91	91	(B) shall promptly notify the appraisal district
92	92	of a change in the unit owner's mailing address; and
93	93	(C) may not offer proof in the judicial or
94	94	administrative proceeding, or in a subsequent related proceeding,
95	95	that otherwise proper service by mail of the notice was not received
96	96	not later than three days after the date the notice was deposited in
97	97	a post office or official depository under the care and custody of
98	98	the United States Postal Service.
99	99	SECTION 4. Section 54.035, Local Government Code, is
100	100	amended by amending Subsections (a), (d), (e), and (f) and adding
101	101	Subsections (a-1) and (a-2) to read as follows:
102	102	(a) Except as provided by Subsections (a-1) and (a-2),
103	103	notice [Notice] of all proceedings before the commission panels
104	104	must be given:
105	105	(1) by personal delivery, by certified mail with
106	106	return receipt requested, or by delivery by the United States
107	107	Postal Service using signature confirmation service, to the record
108	108	owners of the affected property, and each holder of a recorded lien
109	109	against the affected property, as shown by the records in the office
110	110	of the county clerk of the county in which the affected property is
111	111	located if the address of the lienholder can be ascertained from the
112	112	deed of trust establishing the lien or [and/or] other applicable
113	113	instruments on file in the office of the county clerk; and
114	114	(2) to all unknown owners, by posting a copy of the
115	115	notice on the front door of each improvement situated on the
116	116	affected property or as close to the front door as practicable.
117	117	(a-1) Notice to a condominium association of a proceeding
118	118	before a commission panel relating to a condominium, as defined by
119	119	Section 81.002 or 82.003, Property Code, located wholly or partly
120	120	in a municipality with a population of more than 1.9 million must be
121	121	served by personal service, by certified mail, return receipt
122	122	requested, or by the United States Postal Service using signature
123	123	confirmation service, to the registered agent of the unit owners'
124	124	association.
125	125	(a-2) Notice to an owner of a unit of a condominium, as
126	126	defined by Section 81.002 or 82.003, Property Code, located wholly
127	127	or partly in a municipality with a population of more than 1.9
128	128	million must be given in accordance with Section 82.118, Property
129	129	Code.
130	130	(d) A municipality must exercise due diligence to determine
131	131	the identity and address of a property owner, [or] lienholder, or
132	132	registered agent to whom the municipality is required to give
133	133	notice.
134	134	(e) A municipality exercises due diligence in determining
135	135	the identity and address of a property owner, [or] lienholder, or
136	136	registered agent when it follows the procedures for service under
137	137	Section 82.118, Property Code, or searches the following records:
138	138	(1) county real property records of the county in
139	139	which the property is located;
140	140	(2) appraisal district records of the appraisal
141	141	district in which the property is located;
142	142	(3) records of the secretary of state, if the property
143	143	owner, [or] lienholder, or registered agent is a corporation,
144	144	partnership, or other business association;
145	145	(4) assumed name records of the county in which the
146	146	property is located;
147	147	(5) tax records of the municipality; and
148	148	(6) utility records of the municipality.
149	149	(f) When a municipality mails a notice in accordance with
150	150	this section to a property owner, [or] lienholder, or registered
151	151	agent and the United States Postal Service returns the notice as
152	152	"refused" or "unclaimed," the validity of the notice is not
153	153	affected, and the notice is considered delivered.
154	154	SECTION 5. Section 214.001, Local Government Code, is
155	155	amended by amending Subsections (b) and (r) and adding Subsection
156	156	(b-1) to read as follows:
157	157	(b) The ordinance must:
158	158	(1) establish minimum standards for the continued use
159	159	and occupancy of all buildings regardless of the date of their
160	160	construction;
161	161	(2) provide for giving proper notice, subject to
162	162	Subsection (b-1), to the owner of a building; and
163	163	(3) provide for a public hearing to determine whether
164	164	a building complies with the standards set out in the ordinance.
165	165	(b-1) For a condominium, as defined by Section 81.002 or
166	166	82.003, Property Code, located wholly or partly in a municipality
167	167	with a population of more than 1.9 million, notice to a unit owner
168	168	in accordance with Section 82.118, Property Code, and notice to the
169	169	registered agent for the unit owners' association in the manner
170	170	provided for service of process to a condominium association under
171	171	Section 54.035(a-1) satisfy the notice requirements under this
172	172	section.
173	173	(r) When a municipality mails a notice in accordance with
174	174	this section to a property owner, lienholder, [or] mortgagee, or
175	175	registered agent and the United States Postal Service returns the
176	176	notice as "refused" or "unclaimed," the validity of the notice is
177	177	not affected, and the notice is considered delivered.
178	178	SECTION 6. This Act takes effect September 1, 2009.
179	179	______________________________ ______________________________
180	180	President of the Senate Speaker of the House
181	181	I certify that H.B. No. 3128 was passed by the House on May 6,
182	182	2009, by the following vote: Yeas 144, Nays 2, 2 present, not
183	183	voting.
184	184	______________________________
185	185	Chief Clerk of the House
186	186	I certify that H.B. No. 3128 was passed by the Senate on May
187	187	27, 2009, by the following vote: Yeas 31, Nays 0.
188	188	______________________________
189	189	Secretary of the Senate
190	190	APPROVED: _____________________
191	191	Date
192	192	_____________________
193	193	Governor